Asiamet receives key approval for BKM copper project

The AIM-traded firm said the governor of Central Kalimantan provided a recommendation for the project to proceed to the development and construction phase, as part of the process required to secure a forestry ‘borrow-to-use permit’ from the government of Indonesia.

It explained that the BKM project overlaps with a forest area, which allows commercial activities including mining.

That overlap requires the project operator to obtain a 'borrow-to-use forestry permit', which has a number of requirements.

The first is a governor's recommendation, followed by a corridor agreement, and a revised environmental impact assessment for approval by the provincial government environmental agency.

Asiamet said the movement of personnel and government officials had been limited in light of the Covid-19 coronavirus pandemic, and the resulting social distancing.

The company said it was continuing to monitor the situation, with work on all permitting-related workstreams progressing, and various surveys being scheduled and undertaken.

On completion of the three requirements, along with a number of other administrative documents,the Ministry of Environment and Forestry was expected to issue a conditional approval for the ‘borrow-to-use permit’.

The firm said the approval would be conditional in fulfilment of several requirements from the ministry, including surveys for rehabilitation, finalisation of a reclamation bond, boundary tagging of the borrow-to-use area and supporting facilities, and a timber utilisation permit.

“Having recently secured the forestry permit for exploration, Asiamet is very pleased to have now received the governor's recommendation for the Pinjam Pakai permitting process,” said executive chairman Tony Manini.

“The company's highly capable local teams in Jakarta and Palangkaraya continue to deliver these important milestones and clearly demonstrate our ability to continue advancing the BKM copper project towards final approvals for mine development, despite the challenges presented by Covid-19.”

Manini said the receipt of approval from the governor was “very timely”, and while the value of the work was “often underestimated”, receiving key approvals and permits would de-risk and add value to the project.

“The company is making solid progress on other aspects of the Pinjam Pakai permitting process and will provide further updates as information comes to hand.”

At 1559 BST, shares in Asiamet Resources were up 8.25% at 2.62p.